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Sweden's left-of-centre Prime Minister Stefan Lofven says he will call snap elections after his minority government lost a budget vote less than three months after coming to power.
He said a new poll would take place on 22 March.
The government failed to push its budget through parliament, when the far-right Sweden Democrats sided with the opposition.
The Sweden Democrats emerged as a power broker after September's elections.
The party now holds 49 seats and, voting with the centre-right opposition on Wednesday, defeated the government's budget by a margin of 182 to 153.
At a hastily called news conference after the vote, Mr Lofven told reporters that new elections would enable voters to "make a choice in the face of this new political landscape".
Under the constitution he cannot officially call a national poll until 29 December.
Accusing the centre-right parties of failing to engage constructively over the budget, Mr Lofven complained that the opposition had allowed the far right to dictate terms.
"We have formed a government, we have a budget, and we will go into the elections with that," he said, standing alongside a spokesman from his coalition partner, the Greens.